Review Questions
Chapter 4
More Customer Transactions
Topics
This chapter covers the following topics:
•• Handling Customer Credits
•• Writing Off Bad Debt
•• Generating Customer Statements
•• Creating Sales Reports
•• Collecting and Remitting Sales Tax
Review Questions
Select the best answer(s) for each of the following:
1. Which sales form(s) should you use if a customer doesn’t pay its balance in full:
a)Invoice
b) Sales receipt
c)Statement
d) All of the above
2. You create a credit memo to:
a) Request a payment from a customer
b) Issue a credit to a customer’s account
c) Issue a refund to a customer
d) None of the above
3. What method should you use to write off bad debt?
a) Create an item and account for bad debt and use them to create a credit memo that you
can apply to the past due invoice.
b) Void the past due invoice.
c) Create a credit memo for the bad debt amount and add it to a statement for the customer.
d) Any of the above.
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Review Questions
4. Which method should you use to set up QuickBooks to calculate state and county sales taxes that
are paid to two different tax authorities?
a) Create a sales tax code group for state and county sales taxes and apply it to the customers in
that county.
b) Create a sales tax group for state and county sales tax and apply it to the customers in
that county.
c) Create a sales tax item that includes state and county sales taxes and apply it to the customers
in that county.
d) Create one sales tax item for state sales tax and another sales tax item for county sales tax, and
then apply both items to the customers in that county.
5. Which fields should you fill in on transactions so that transactions on customer statements are
easy to identify?
a) The transaction’s number field.
b) The Date field
c) The Class field
d) The Memo field.
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Chapter 4: More Customer Transactions
More Customer Transactions Exercise 1
More Customer Transactions Exercise 1
Restore the sample file, sample_product-based business 2015 (Portable).QBM. (Or, if you are using
QuickBooks 2014, restore sample_product-based business 2014 (Portable).QBM.)
1. Create an invoice (number 18001) to Bauman, Mark’s Home Remodel job, dated 1/20/2019.
Assign it to the Remodel class. The customer purchased 40 boards of trim lumber (rate of $5 per
board). Apply the East Bayshore tax item. Use the class and tax item for all transactions for this
job. Print the invoice.
Figure 4-1 Invoice
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More Customer Transactions Exercise 1
2. Mark Bauman is returning 5 boards of trim lumber. Create a credit memo (number 1201-C1)
dated 2/15/2019. Credit the job for the 5 returned boards ($5 per board). Apply the credit to the
open invoice. Print the credit memo.
Figure 4-2 Credit Memo Window
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Chapter 4: More Customer Transactions
More Customer Transactions Exercise 1
3.Print Sales by Customer Summary report for January 2019.
Figure 4-3 Sales by Customer Summary
4.Print Sales by Item Summary report for January 2019.
Figure 4-4 Sales by Item Summary
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More Customer Transactions Exercise 1
5. Create and print customer statements for the period of 1/1/2019 through 1/31/2019. Print Statements for all residential customers who have a balance due.
Figure 4-5 Customer Statement
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Chapter 4: More Customer Transactions
More Customer Transactions Exercise 2 (Advanced)
More Customer Transactions Exercise 2 (Advanced)
Restore the sample file, sample_product-based business 2015 (Portable).QBM. (Or, if you are using
QuickBooks 2014, restore sample_product-based business 2014 (Portable).QBM.)
1. Create invoice number 18001 dated 1/17/2019 to Easley, Paula garage job. Use the New Construction class. Apply 2% 10 Net 30 terms only to this invoice. This invoice covers 4 hours of Removal
service and 8 hours of Installation service. Use the East Bayshore tax rate. Print the invoice.
Figure 4-6 Invoice
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More Customer Transactions Exercise 2 (Advanced)
2.On 1/21/2019, receive payment by check for the Easley, Paula garage job invoice. She paid in full
by check #3633. She took a 2% early payment discount of $8.40. Use the Less Discounts Given
account and the New Construction class.
Figure 4-7 Receive Payments Window
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Chapter 4: More Customer Transactions
More Customer Transactions Exercise 2 (Advanced)
3. Create invoice number 18002 dated 1/17/2019 to Davies, Aaron Remodel job. Use the appropriate
class. Apply Net 30 terms and use those terms for all future transactions. This invoice is for one
custom-made counter top. Use the E. Bayshore/County tax item. Print the invoice.
Figure 4-8 Invoice
4.On 2/7/2019, Mr. Davies called to pay using his credit card. He provided his Visa number:
1111-2222-3333-4444 with Expiration 05/2019. He paid $2,052.93.
Figure 4-9 Receive Payments Window
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More Customer Transactions Exercise 2 (Advanced)
5. Create invoice number 18003 dated 1/18/2019 to Vitton, David Remodel job. Use the appropriate
class. This invoice is for appliances: refrigerator, dishwasher, and stove. Add the appliances to the
Description. The amount is $2,850. Use the San Tomas tax item. Print the invoice.
Figure 4-10 Invoice
6.On 2/8/2019, you received check #1924 from Mr. Vitton for $1,000.00 as payment for invoice
18003. Record that payment and keep it as an underpayment.
Figure 4-11 Receive Payments Window
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Chapter 4: More Customer Transactions
More Customer Transactions Exercise 2 (Advanced)
7.On 2/7/2019, Paula Easley requested a refund for 2 hours of installation. Create credit memo
number 18001 — C1 and issue a refund check dated 1/7/2019.
Figure 4-12 Credit Memo Window
Figure 4-13 Refund Check
8.On 2/10/2019, create a credit memo (1086-C1) to write off invoice 1086 to Ecker Designs Office
Repairs job. Use the Remodel class. Add the Bad Debt item to the credit memo. The invoice
includes $477 of nontaxable items, so record the first Bad Debt as nontaxable. Add the Bad Debt
item to the second row, set the amount to $920, and make it taxable. Mark the Bad Debt item
on the credit memo as taxable. The entire write-off is $1,468.30. Apply the credit memo to the
open invoice.
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More Customer Transactions Exercise 2 (Advanced)
Figure 4-14 Bad Debt
9. Create invoice number 18004 dated 1/18/2019 to Castillo, Eloisa’s utility Room job. Use the
New Construction class. This invoice is for 4 interior doors and 4 locking door knobs. Use the East
Bayshore tax item. Print the invoice.
Figure 4-15 Invoice
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Chapter 4: More Customer Transactions
More Customer Transactions Exercise 2 (Advanced)
10. Eloisa Castillo is returning 2 doors and 2 doorknobs. On 2/16/2019, create credit memo number
18004-C1 to record the return. Subtotal the items being returned. Create an Other Charge item
called Restocking Fee assigned to the Materials Income account to hold back a 15% restocking fee
(nontaxable) and add it to the credit memo. Keep the credit.
Figure 4-16 Credit Memo Window
11.On 2/28/2019, deposit all the checks you received in January and February 2019. The total
deposit amount is $1,411.60. Print the Deposit Slip and Deposit Summary.
Figure 4-17 Deposit Summary
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More Customer Transactions Exercise 2 (Advanced)
12. Deposit all VISA payments on 2/8/2019. Record a 2% bank card fee to Bank of Anycity assigned
to the Bank Service Charges expense account. The total deposit amount is $2,011.87. Print the
Deposit Summary Only.
Figure 4-18 Deposit Summary
13. Print Sales by Customer Summary report for January 2019.
Figure 4-19 Sales by Customer Summary
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Chapter 4: More Customer Transactions
More Customer Transactions Exercise 2 (Advanced)
14. Print Sales by Item Summary report for January 2019.
Figure 4-20 Sales by Item Summary
15. Create and print customer Statements for the period of February 1, 2019 through February 28,
2019. Print Statements for all residential customers who have a balance due. (There is not screenshot for this step.) The statements include:
Robert Allard
$14,510.00
Jason Bunch
$1,005.00
Heather Campbell
Eloisa Castillo
$13,900.00
$253.66
Brian Cook
$9,397.33
Doug Jacobson
$2,320.00
Anton Teschner
$565.95
Mike Violette
$4,732.23
David Vitton
$2,770.88
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